What changed
RBI withdrew 5 additional circulars issued to public sector banks, following a previous withdrawal in December 2006. Banks are now required to review these circulars and, if the instructions remain relevant, substitute them with board-approved policies.
What it means for you
This reduces the regulatory burden on PSBs by removing outdated circulars, but banks must ensure critical instructions are not lost. Lenders need to proactively assess and internalize any still-valid requirements into their own governance frameworks.
What you must do
- Review the enclosed list of 5 withdrawn circulars carefully.
- Identify any instructions still relevant to your bank's operations.
- Draft and get board approval for policies to replace those instructions.
- Maintain documentation of the substitution process for audit readiness.
Who it affects
Public sector banks, Board of directors of PSBs, Compliance and policy teams
What should we do if a withdrawn circular still contains important instructions?
You must create a board-approved policy or procedure that captures the essence of those instructions to ensure continuity.
Is this withdrawal applicable to private sector banks?
No, this circular is specifically addressed to all public sector banks only.